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The following units of an inventory item were available for sale during the year:

Beginning inventory 11 units at $47
First purchase 19 units at $52
Second purchase 22 units at $56
Third purchase 17 units at $61
The firm uses the periodic inventory system. During the year, 53 units of the item were sold.

The value of ending inventory using LIFO is

User Bill Barry
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Based on the available information, the value of the ending inventory using the LIFO method is $2,024.

To calculate the value of ending inventory using the LIFO (Last-In, First-Out) method, assume that the most recent purchases are sold first.

Let's calculate the value of ending inventory step by step:

1. Calculate the cost of goods sold (COGS):

COGS = (Number of units sold) * (Cost per unit)

COGS = 53 units * (cost of the most recent purchase)

Using the LIFO method, the cost of the most recent purchase is $61 per unit.

COGS = 53 units * $61

COGS = $3,233

2. Calculate the value of ending inventory:

Ending Inventory = (Number of units available for sale) * (Cost per unit) - COGS

To calculate the cost per unit, we need to consider the most recent purchases first. Therefore, start with the third purchase, then the second purchase, and finally the first purchase.

Number of units available for sale = (Beginning inventory) + (First purchase) + (Second purchase) + (Third purchase)

Number of units available for sale = 11 + 19 + 22 + 17 = 69 units

Cost per unit:

For the third purchase: 17 units * $61 = $1,037

For the second purchase: 22 units * $56 = $1,232

For the first purchase: 19 units * $52 = $988

Ending Inventory = $1,037 + $1,232 + $988 - $3,233

Ending Inventory = $2,024

Therefore, the value of the ending inventory using the LIFO method is $2,024.

User Logic
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